Year in review: 2012

Following is a selection of stories that appeared on Voice for Liberty in 2012. Was it a good or bad year for the causes of economic freedom, individual liberty, limited government, free markets, and civil society?

January

Boeing departure presents challenge for Wichita and Kansas. The announcement of the departure from Wichita of Boeing presents challenges for the Wichita area and the state of Kansas. The response of government officials over the next few years will need to depart from past and present practice if Wichita wants to build a dynamic and sustainable economy. With a few exceptions, our current elected officials will likely proceed with targeted economic development, and Wichita and Kansas will miss an opportunity to implement meaningful and lasting change.

Wichita TIF: Taxpayer-funded benefits to political players. It is now confirmed: In Wichita, tax increment financing (TIF) leads to taxpayer-funded waste that benefits those with political connections at city hall. … The flow of tax dollars Wichita city leaders had planned for Douglas Place called for taxpayer funds to be routed to a politically-connected construction firm. And unlike the real world, where developers have an incentive to build economically, the city created incentives for Douglas Place developers to spend lavishly in a parking garage, at no cost to themselves. In fact, the wasteful spending would result in profit for them.

Kansas Speaker: Schools don’t spend all they have. Based on choices that many school districts have made in response to legislation giving them flexibility to spend fund balances, Speaker of the Kansas House of Representatives Mike O’Neal questions whether a school funding crisis actually exists.

Kansas Bioscience Authority. The release of a forensics audit of the Kansas Bioscience Authority coupled with two days of joint committee hearings revealed an independent government agency out of control, an audit that draws conclusions described as sanitized of important details, and an agency and legislative supporters who believe that now, all is well at the KBA.

February

Carl Brewer: State of the City for Wichita, 2012. Last night Wichita Mayor Carl Brewer delivered his annual State of the City Address. We learned, again, that Wichita’s mayor is openly dismissive of economic freedom, free markets, and limited government, calling these principles of freedom and liberty “simplistic.” Instead, his government prefers crony capitalism and corporate welfare. This is the troubling message that emerges from Brewer’s State of the City address.

Kansas needs pay-to-play laws. In Wichita, campaign contributions made to city council candidates often are not about supporting political ideologies — liberal, moderate, or conservative. It’s about opportunists seeking money from government. Pay-to-play laws can help control this harmful practice.

No-bid contracts a problem in Wichita. Wichita Eagle reporting uncovers a problem with no-bid contracts for construction projects in Wichita. This revelation illustrates these things: a Wichita City Council almost totally captured by special interests, crony capitalism on steroids, and another example of why Wichita and Kansas need pay-to-play laws.

Wichita economic development isn’t working. Economic development in Wichita isn’t working very well. The Greater Wichita Economic Development Coalition along with long-serving politicians and bureaucrats need to be held accountable, and our strategy must change.

Kansas and Wichita lag the nation in tax costs. If we in Kansas and Wichita wonder why our economic growth is slow and our economic development programs don’t seem to be producing results, there is now data to answer the question why: Our tax rates are high — way too high.

A Wichita shocker. The Wall Street Journal comments on last week’s election in Wichita, noting “Local politicians like to get in bed with local business, and taxpayers are usually the losers.”

In Kansas, public school establishment attacks high standards. When a Kansas public policy think tank placed ads in Kansas newspapers calling attention to the performance of Kansas schools, the public school establishment didn’t like it. The defense of the Kansas school status quo, especially that coming from Kansas Commissioner of Education Diane DeBacker, ought to cause Kansans to examine the motives of the school spending establishment and their ability to be truthful about Kansas schools.

Wichita new home tax rebate program: The analysis. A document released by the City of Wichita casts strong doubt on the wisdom of a new home property tax rebate program. The document also lets us know that city staff are not being entirely honest with the citizens of Wichita.

In Kansas, no E-verify, please. The hope that if we can somehow stop illegal immigrants from obtaining jobs, then unemployed Americans can go back to work, is a false hope. For that and other reasons, I can’t join with Kansas conservatives who support E-verify and other harsh anti-immigrant measures.

April

Kansas may again resort to government art. Kansas may be ready to restore some state funding for the arts. But for reasons economic, human, and artistic, we ought to keep Kansas government out of art. Kansas should allow people themselves to decide how to spend their own money on what they think is important to them. To implement government funding of art is to override the freedom of individual choice with political and bureaucratic decisions.

For Koch critics, facts aren’t part of the equation. A newspaper editorial begins with “What is it, or why is it, that the name Koch, particularly here in Lawrence and Kansas, seems to trigger such angry, passionate and negative responses from a certain segment of the community, particularly among some at Kansas University?” It’s a good question.

In Kansas, planning will be captured by special interests. The government planning process started in south-central Kansas will likely be captured by special interest groups that see ways to benefit from the plan. The public choice school of economics and political science has taught us how special interest groups seek favors from government at enormous costs to society, and we will see this at play again over the next few years.

Federal grants increase future local spending. Not only are we taxed to pay for the cost of funding federal and state grants, the units of government that receive grants are very likely to raise their own levels of taxation in response to the receipt of the grants. This creates a cycle of ever-expanding government.

Thinking beyond stage one in economic development for Wichita. It’s hard to think beyond stage one. It requires considering not only the seen, but also the unseen, as Frederic Bastiat taught us in his famous parable of the broken window. But over and over we see how politicians at all levels of government stop thinking at stage one. This is one of the many reasons why we need to return as much decision-making as possible to the private sector, and drastically limit the powers of politicians and governments.

Wichita pension plan report. First, the good news: The condition of Wichita Employees’ Retirement System is nowhere near as dire as Kansas Public Employee Retirement System, or KPERS.. But the city is having to make much higher contributions to keep the plan funded. These contribution rates are likely to increase, as the plan relies on unrealistic assumptions.

Intrust Bank Arena finances: The worst news is hidden. The true state of the finances of the Intrust Bank Arena in downtown Wichita are not often a subject of public discussion. Arena boosters promote a revenue-sharing arrangement between the county and the arena operator, referring to this as profit or loss. But this arrangement is not an accurate and complete accounting, and hides the true economics of the arena.

Kansas state spending is not, itself, a good. In the debate over reducing and eventually eliminating the income tax in Kansas, those who oppose income tax reduction say it will simply shift the burden of taxation to others, in the form of sales and property taxes. This is true only if we decide to keep spending at the same rate. We could cut spending in response to reduced revenue, but it is argued that state spending is a good thing, a source of wealth that Kansas should continue to rely on.

May

Kansas school test scores. Kansas scores on the nationwide NAEP tests are unchanged or falling at the same time scores on Kansas tests are rising — “jumping,” in the recent words of Kansas Education Commissioner Diane DeBacker.

Kansans uninformed on school spending. As the Kansas Legislature debates spending on schools, we have to hope that legislators are more knowledgeable about school spending than the average Kansan. Surveys have found that few Kansans have accurate information regarding school spending. Surprisingly, those with children in the public school system are even more likely to be uninformed regarding accurate figures. But when presented with accurate information about changes in school spending, few Kansans are willing to pay increased taxes to support more school spending.

Kansas could grow with lower taxes. Two research papers illustrate the need to reduce taxes in Kansas, finding that high taxes are associated with reduced income and low economic growth. Research such as this rebuts the presumption of government spending advocates that reducing taxes will kill jobs in Kansas.

Wichita school spending: The grain of truth. The Wichita school district, like most of the Kansas school spending establishment, uses spending figures containing a grain of truth to make a larger and misleading argument about school spending.

June

School funding suitability in Kansas. As a Kansas court considers intervening in Kansas school finance, the importance of accurate and meaningful evidence on school funding should be the court’s top priority. Supporters of increased school funding rely on two studies that they claim supports more funding for schools. An analysis by Kansas Policy Institute is helpful in understanding why the studies relied on in the past should be discarded.

August

Kansas traditional Republicans: The record. As Kansas Republicans decide who to vote for in next week’s primary election, moderate senate incumbents and many newspapers urge voting for those Republicans who promote a “reasonable,” “balanced,” and “responsible” approach to Kansas government. When we examine the record of the coalition of moderate Republicans and Democrats that governed Kansas for the first decade of this century, we see legislative accomplishment that not many Kansans may be aware of.

Wichita voters reject cronyism — again. Voters in Wichita and the surrounding area have rejected, for the second time this year, the culture of political cronyism that passes for economic development in Wichita.

Wichita revises economic development policy. The City of Wichita has passed a revision to its economic development policies. Instead of promoting economic freedom and a free-market approach, the new policy gives greater power to city bureaucrats and politicians, and is unlikely to produce the economic development that Wichita needs.

Wichita fluoridation debate reveals attitudes of government. Is community water fluoridation like iodized salt? According to Wichita City Council Member and Vice Mayor Janet Miller, we didn’t vote on whether to put iodine in table salt, so Wichitans don’t need to vote on whether to add fluoride to drinking water.

NetApp economic development incentives: all of them. The Wichita City Council will consider economic development incentives designed to secure new jobs in Wichita at NetApp. Few Kansans, however, are probably aware of the entire scope of the incentive package and the harm it causes.

Kansas lawmakers, including judges, should be selected democratically. While many believe that judges should not “legislate from the bench,” the reality is that lawmaking is a judicial function. In a democracy, lawmakers should be elected under the principle of “one person, one vote.” But Kansas, which uses the Missouri Plan for judicial selection to its two highest courts, violates this principle.

Surveillance state arrives in Wichita. In an effort to control crime in Old Town, Wichita is importing the police surveillance state. Once camera use has started, it is likely to spread.

Regarding Kansas schools, power is not with parents. Information and options allow parents to make the best decisions for their children regarding schools. But in Kansas, parents have little power to make good decisions for their children, relative to the other states.

Wichita waltzing waters dedication a chance to reflect. While the dedication ceremonies for Wichita’s Waltzing Waters fountain are promoted as celebrations, we might use this opportunity to review the history and impact of WaterWalk, which has absorbed many millions of taxpayer subsidy with few results.

November

In Sedgwick County, a judicial candidate takes the low road. Voters are accustomed to political campaigns that sink low with distorted facts, missing facts, innuendo, and outright lies. Judges, however, ought to be held to a higher standard, and in Kansas, the Supreme Court has rules for judges to follow in their campaigns. But the campaign for incumbent Richard T. Ballinger in Sedgwick County, Kansas, doesn’t seem to be interested in following these rules.

You should be able to photograph your ballot. “Every election is a sort of advance auction of stolen goods.” Whether the sale is implicit or explicit, it doesn’t change what’s happening. There’s no need to create new laws or enforcement powers.

In Wichita, creating more willing taxpayers. Is the goal of Wichita/Sedgwick County Community Investments Plan to create more willing taxpayers? A paper from the Hugo Wall School of Urban and Public affairs gives us a clue — and a warning.

I, Pencil: The Movie. Now in movie form, the story of the humble pencil illustrates the wonder and power of “the spontaneous configuration of creative human energies.”

Wichita licenses the striping of parking lots. Next week the Wichita City Council will consider licensing and regulating the painting of stripes in parking lots. How, may I ask, has civilization advanced without the benefit of such regulation?

December

In Wichita, a quest for campaign finance reform. Actions of the Wichita City Council have shown that campaign finance reform is needed. Citizen groups are investigating how to accomplish this needed reform, since the council has not shown interest in reforming itself.

Economic development incentives questioned. When the New York Times is concerned about the cost of government spending programs, it’s a safe bet that things are really out of control. Its recent feature reports on economic development incentive programs that are costly and produce questionable benefits.

Wichita, again, fails at open government. The Wichita City Council, when presented with an opportunity to increase the ability of citizens to observe the workings of the government they pay for, decided against the cause of open government, preferring to keep the spending of taxpayer money a secret.

Kansas budget solution overlooked. As Kansas prepares for a legislative session that must find ways to balance a budget in the face of declining revenues, not all solutions are being considered.

Featured Thoughts

We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness — Declaration of Independence

The enumeration in the Constitution, of certain rights, shall not be construed to deny or disparage others retained by the people. — Ninth Amendment to the U.S. Constitution

Government is essentially the negation of liberty. — Ludwig von Mises

It is the responsibility of the patriot to protect his country from its government. — Thomas Paine

It does not take a majority to prevail, but an irate, tireless minority keen to set brushfires of freedom in the minds of men. — Samuel Adams

You do not know, and will never know, who the Remnant are, nor where they are, nor how many of them there are, nor what they are doing or will do. Two things you know, and no more: first, that they exist; second, that they will find you. — Albert Jay Nock

A major source of objection to a free economy is precisely that ... it gives people what they want instead of what a particular group thinks they ought to want. Underlying most arguments against the free market is a lack of belief in freedom itself. — Milton Friedman

As the coercive power of the state will alone decide who is to have what, the only power worth having will be a share in the exercise of this directing power. — F.A. Hayek

The kind of rules we should have are the kind that we'd make if our worst enemy were in charge. — Walter E. Williams

Your principle has placed these words above the entrance of the legislative chamber: “whosoever acquires any influence here can obtain his share of legal plunder.” And what has been the result? All classes have flung themselves upon the doors of the chamber crying: “A share of the plunder for me, for me!” — Frederic Bastiat

This was all before politicians gave us the idea that the things we could not afford individually we could somehow afford collectively through the magic of government. — Thomas Sowell

While the short-run prospects for liberty at home and abroad may seem dim, the proper attitude for the Libertarian to take is that of unquenchable long-run optimism. — Murray N. Rothbard

Barbra Streisand told Diane Sawyer that we're in a global warming crisis, and we can expect more and more intense storms, droughts and dust bowls. But before they act, weather experts say they're still waiting to hear from Celine Dion. — Jay Leno

The great virtue of free enterprise is that it forces existing businesses to meet the test of the market continuously, to produce products that meet consumer demands at lowest cost, or else be driven from the market. It is a profit-and-loss system. Naturally, existing businesses generally prefer to keep out competitors in other ways. That is why the business community, despite its rhetoric, has so often been a major enemy of truly free enterprise. — Milton Friedman

Increasingly, it seems that the biggest difference between conservatives and liberals is that the conservatives know government is force. But that doesn't stop them from using it. — John Stossel

One of the annoying things about believing in free will and individual responsibility is the difficulty of finding somebody to blame your problems on. And when you do find somebody, it's remarkable how often his picture turns up on your driver's license. — P.J. O'Rourke

Late one night in Washington, D.C. a mugger wearing a ski mask jumped into the path of a well-dressed man and stuck a gun in his ribs. "Give me your money!" he demanded. Indignant, the affluent man replied, "You can't do this. I'm a United States Congressman!" "In that case," replied the robber, "give me my money!" — Related by Walter Block

The libertarian creed, finally, offers the fulfillment of the best of the American past along with the promise of a far better future. Even more than conservatives, who are often attached to the monarchical traditions of a happily obsolete European past, libertarians are squarely in the great classical liberal tradition that built the United States and bestowed on us the American heritage of individual liberty, a peaceful foreign policy, minimal government, and a free-market economy. Libertarians are the only genuine current heirs of Jefferson, Paine, Jackson, and the abolitionists. — From "For A New Liberty: The Libertarian Manifesto" by Murray N. Rothbard

No matter how disastrously some policy has turned out, anyone who criticizes it can expect to hear: “But what would you replace it with?” When you put out a fire, what do you replace it with? — Thomas Sowell

Here’s Williams’ law: Whenever the profit incentive is missing, the probability that people’s wants can be safely ignored is the greatest. — Walter E. Williams

I would remind you that extremism in the defense of liberty is no vice. And let me remind you also that moderation in the pursuit of justice is no virtue. — Barry Goldwater

A society that puts equality — in the sense of equality of outcome — ahead of freedom will end up with neither equality nor freedom. The use of force to achieve equality will destroy freedom, and the force, introduced for good purposes, will end up in the hands of people who use it to promote their own interests. — Milton Friedman

When it becomes dominated by a collectivist creed, democracy will inevitably destroy itself. — F.A. Hayek

The most dangerous man, to any government, is the man who is able to think things out for himself, without regard to the prevailing superstitions and taboos. Almost inevitably he comes to the conclusion that the government he lives under is dishonest, insane and intolerable, and so, if he is romantic, he tries to change it. — H.L. Mencken

Of all tyrannies, a tyranny exercised for the good of its victims may be the most oppressive. It may be better to live under robber barons than under omnipotent moral busybodies. The robber baron's cruelty may sometimes sleep, his cupidity may at some point be satiated; but those who torment us for our own good will torment us without end, for they do so with the approval of their own conscience. — C.S. Lewis

When the people find they can vote themselves money, that will herald the end of the republic. — Benjamin Franklin

What is euphemistically called government-corporate "partnership" is just government coercion, political favoritism, collectivist industrial policy, and old-fashioned federal boondoggles nicely wrapped up in a bright-colored ribbon. It doesn’t work. — Ronald Reagan

Those fighting for free enterprise and free competition do not defend the interests of those rich today. They want a free hand left to unknown men who will be the entrepreneurs of tomorrow. — Ludwig von Mises

The problem is big government. If whoever controls government can impose his way upon you, you have to fight constantly to prevent the control from being harmful. With small, limited government, it doesn’t much matter who controls it, because it can’t do you much harm. — Harry Browne

Life, liberty, and property do not exist because men have made laws. On the contrary, it was the fact that life, liberty, and property existed beforehand that caused men to make laws in the first place. — Frederic Bastiat

It is indeed probable that more harm and misery have been caused by men determined to use coercion to stamp out a moral evil than by men intent on doing evil. — F.A. Hayek

Freedom in economic arrangements is itself a component of freedom broadly understood, so economic freedom is an end in itself ... Economic freedom is also an indispensable means toward the achievement of political freedom. — Milton Friedman

Be thankful we're not getting all the government we're paying for. — Will Rogers

The American people will never knowingly adopt socialism, but under the name of liberalism, they will adopt every fragment of the socialist program until one day America will be a socialist nation without ever knowing how it happened. — Norman Thomas

[The political system] tends to give undue political power to small groups that have highly concentrated interests; to give greater weight to obvious, direct and immediate effects of government action than to possibly more important but concealed, indirect and delayed effects; to set in motion a process that sacrifices the general interest to serve special interests rather than the other way around. There is, as it were, an invisible hand in politics that operates in precisely the opposite direction to Adam Smith's invisible hand. — Milton Friedman

I'd rather be governed by the first 2,000 names in the Boston telephone directory than by the faculty of Harvard. — William F. Buckley Jr.

Liberty is not a means to a political end. It is itself the highest political end. — Lord Acton

The great virtue of a free market system is that it does not care what color people are; it does not care what their religion is; it only cares whether they can produce something you want to buy. It is the most effective system we have discovered to enable people who hate one another to deal with one another and help one another. — Milton Friedman

It is not from the benevolence of the butcher, the brewer, or the baker, that we expect our dinner, but from regard to their own interest. We address ourselves, not to their humanity but to their self-love, and never talk to them of our own necessities but of their advantages. Nobody but a beggar chooses to depend chiefly upon the benevolence of his fellow citizens. — Adam Smith

Democracy is a pathetic belief in the collective wisdom of individual ignorance. — H.L. Mencken

This is the shabby secret of the welfare statists' tirades against gold. Deficit spending is simply a scheme for the "hidden" confiscation of wealth. Gold stands in the way of this insidious process. It stands as a protector of property rights. If one grasps this, one has no difficulty in understanding the statists' antagonism toward the gold standard. — Alan Greenspan, “Gold and Economic Freedom” [1966]

Fundamentally, there are only two ways of coordinating the economic activities of millions. One is central direction involving the use of coercion — the technique of the army and of the modern totalitarian state. The other is voluntary cooperation of individuals — the technique of the marketplace. — Milton Friedman

The compelling issue to both conservatives and liberals is not whether it is legitimate for government to confiscate one’s property to give to another, the debate is over the disposition of the pillage. — Walter Williams

In Germany, they came first for the Communists,
And I didn’t speak up because I wasn’t a Communist;
And then they came for the trade unionists,
And I didn’t speak up because I wasn’t a trade unionist;
And then they came for the Jews,
And I didn’t speak up because I wasn’t a Jew;
And then ... they came for me ...
And by that time there was no one left to speak up.
— Pastor Martin Niemöller

There is no virtue in compulsory government charity, and there is no virtue in advocating it. A politician who portrays himself as "caring" and "sensitive" because he wants to expand the government's charitable programs is merely saying that he's willing to try to do good with other people's money. Well, who isn't? And a voter who takes pride in supporting such programs is telling us that he'll do good with his own money — if a gun is held to his head. — P.J. O'Rourke

The difference between libertarianism and socialism is that libertarians will tolerate the existence of a socialist community, but socialists can't tolerate a libertarian community. — David Boaz

When the people fear their government, there is tyranny; when the government fears the people, there is liberty. — Thomas Jefferson

After all, only the imagination limits the kind of laws and restrictions that can be written in the name of saving the planet. — Walter E. Williams

One of the methods used by statists to destroy capitalism consists in establishing controls that tie a given industry hand and foot, making it unable to solve its problems, then declaring that freedom has failed and stronger controls are necessary. — Ayn Rand

People of the same trade seldom meet together, even for merriment and diversion, but the conversation ends in a conspiracy against the publick. ... It is impossible indeed to prevent such meetings, by any law which either could be executed, or would be consistent with liberty and justice. But though the law cannot hinder people of the same trade from sometimes assembling together, it ought to do nothing to facilitate such assemblies; much less to render them necessary. — Adam Smith

Act only on that maxim through which you can at the same time will that it should become a universal law. — Immanuel Kant

When plunder becomes a way of life for a group of men living together in society, they create for themselves in the course of time a legal system that authorizes it and a moral code that justifies it. — Frederic Bastiat